The Commonwealth Bank says it has received another $450 million in progress payments from the sale of its insurance business, CommInsure to AIA.
In a statement to the ASX yesterday the CBA said the additional proceeds will result in a pro forma increase to the Group’s Common Equity Tier 1 ratio of 8 basis points on an APRA basis as at June 30 this year.
“As the earnings impact of the CommInsure Life divestment was largely recognised in FY20 when CommInsure Life was deconsolidated for accounting purposes, the impact of the receipt of the additional proceeds on the Group’s FY21 earnings is not material,” the CBA said.
CBA said it has now received approximately $2.3 billion to date from the sale – made up of $2.1 billion of cash payments from AIA in addition to approximately $240 million of dividend payments in excess of the profits of CommInsure Life.
CBA says it now expects that completion of the divestment of CommInsure Life will occur via a statutory asset transfer in June half of next year, at which time the remaining $100 million in payments will be received.
CBA shares fell 2.1% to $63.61.
